Woah that looks strange.
Yeah you can do a factory reset if you feel that it would not be too much of a hassle to reinstall all the apps again & do all the settings again from scratch.
That said, I am not so sure that it is hacked.
Let us try the following may be?
1) Do the play services 'clear data' step again & restart the phone. (Make sure to turn off mobile data & Wi-Fi before restarting).
2) After the phone restarts, plug the charger in so that it starts charging.
3) Turn the Wi-Fi on when the battery is greater than at least 90%. Do not unplug the charger. Let it continue to charge.
4) Try updating again.
If this does not work, we'll try something else (may be in safe mode?).